Securities Contracts (Regulation) Act, 1956
2. Definitions
In this Act, unless the context otherwise requires,— (a) “contract” means a contract for or relating ... unsecured, risk instrument or contract for differences or any other form of security; (B) a contract which derives its value from the prices, or index
Section 18A in The Securities Contracts (Regulation) Act, 1956
18A. Contracts in derivative.
Notwithstanding anything contained in any other law for the time being ... force, contracts in derivative shall be legal and valid if such contracts are— (a) traded on a recognised stock exchange; (b) settled on the clearing
that
under the said Regulation, trading member can buy or sell derivatives contracts on
behalf of the constituent only on the receipt of margin ... decide from time to time, on the price of
the derivatives contracts proposed to be purchased, unless the constituent already
has an equivalent credit with
provided as expense in the books of accounts on
account of derivative contracts. Please justify its deduction."
6.4 In response the assessee replied ... assessee has not entered in derivative contracts in any
Recognized Stock Exchange.
iv) The assessee has not entered into any hedge transaction for items
imported
respect of the interest rate derivatives, the Ld. AR submitted that the underlying of
this derivative contract was the loan commitments. The interest paid ... interest rate derivative, showed that the Revenue adopted
selective approach to treat the gain derived from derivative contract to be true & real
Foreign exchange derivative contract" means a financial contract which derives its value from the change in the exchange rate of two currencies at least ... foreign exchange derivative transaction to manage currency risk. (xvi) 'Exchange traded currency derivatives' means a standardised foreign exchange derivative contract traded on a recognized stock
Section 5C in The Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000
5C. [ [Deleted 'para 5C' by Notification No. FEMA.398/RB-2020, dated
Section 6 in The Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000
6. [ Commodity hedge.
- (i) Reserve Bank may, on an application made
Section 8 in The Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000
8. [ Remittance related to a Commodity Derivative Contract.
- An authorized dealer ... person resident in India of amount incidental to a commodity derivative contract entered into in accordance with regulation 6; (c) any other remittance related
Section 6A in The Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000
6A. [ Freight hedge.
- (i) Reserve Bank may, on an application made ... conditions as may be considered necessary, to enter into a freight derivative contract in an exchange or a market outside India to hedge the freight
